Shopify’s Revenue Sharing

June 3rd, 2010

Shopify has a brilliant revenue sharing system:

The way Unicorn works is that twice a month we deposit money into the Unicorn system as a revenue share with all employees. The system automatically splits it evenly amongst all employees. However, no one can simply take the money out. You can only “invest” it in other employees as a thank you and bonus for accomplishments. This means that bonuses are paid where the company (being the employees) thinks they are due. Sometimes this leads to odd results (I recently got a $13 bonus for successfully nuggeting jesse) but who am I to argue if the company decides that this is worth rewarding?

Isn’t that great? It (1) encourages goodwill between employees (receiving a little gift from someone else would surely brighten up their day), (2) encourages employees to do great work (but whether they are doing so is decided by the company, rather than cold and impersonal standards), and (3) encourages employees to proactively look for others doing great things.

That’s fantastic.